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    Ahead of Market: 10 things that will decide D-Street action on Friday

    Synopsis

    “Over the short term, the trend is likely to remain positive. On the higher end, resistance is pegged at 18,900-19,000, whereas supports are placed at 18,700/18,500,” Rupak De, Senior Technical Analyst at LKP Securities, said.

    Ahead of Market: 10 things that will decide D-Street action on FridayAgencies

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    Indian equity markets extended gains for the eighth straight session on Thursday after US Federal Reserve Chair Jerome Powell dropped hints about a slowdown in the pace of interest rate hikes. The S&P BSE Sensex rose 0.29% to close at 63,284, while the Nifty 50 index gained 0.29% to settle at 18,812.

    Here's how analysts read the market pulse:

    “Over the short term, the trend is likely to remain positive. On the higher end, resistance is pegged at 18,900-19,000, whereas supports are placed at 18,700/18,500,” Rupak De, Senior Technical Analyst at LKP Securities, said.

    “We may see a bit of consolidation after the recent surge. However, upbeat global cues would keep the tone positive. Besides, improvement in the broader market participation is an added relief. Participants should continue with a positive bias and utilise pause or dip as a buying opportunity. At the same time, one should not go overboard and stick largely with the index majors and quality midcaps,” Ajit Mishra, VP - Research, Religare Broking, said.

    That said, here’s a look at what some key indicators are suggesting for Friday's action:

    US market
    Wall Street gave up gains made earlier on Thursday as a contraction in manufacturing activity last month clouded data showing a mild easing in inflation and solid consumer spending, while a fall in Salesforce shares dragged the Dow lower.

    U.S. manufacturing activity shrank for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, and proved to be a trigger for investors to book profits following a rally in the previous session. At 10:33 a.m. ET, the Dow Jones Industrial Average was down 439.25 points, or 1.27%, at 34,150.52, the S&P 500 was down 26.13 points, or 0.64%, at 4,053.98, and the Nasdaq Composite was down 69.40 points, or 0.61%, at 11,398.60.

    European shares
    European shares scaled over three-month highs on Thursday, cheered by U.S. Federal Reserve Chair Jerome Powell signalling smaller interest rate hikes ahead, and China softening its tone on strict COVID-19 rules.

    The pan-European STOXX 600 index rose 0.9% by 0810 GMT, after rising 6.8% in November, its best month since July.

    Tech View: Small negative candle
    Even as headline equity index Nifty ended the weekly expiry day today higher by 54 points, a small negative candle was formed on the daily chart as the opening was higher than the closing figure. This red candle indicates tiredness in the market at the highs but there is no confirmation of any negative reversal pattern.

    The RSI on the daily chart gave a falling trendline breakout.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Jamna Auto, Hinduja Global, Tata Steel Long Products, Brigade Enterprises, UltraTech Cement and Strides Shasun, among others.

    The MACD is known for signalling trend reversals in traded securities or indices. When the MACD crosses above the Signal Line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.

    Stocks signalling weakness ahead
    The MACD showed bearish signs on the counters of Schaeffler India, HCL Tech, Railtel Corp, Amber Enterprises and Finolex Industries among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

    Most active stocks in value terms
    HDFC Bank (Rs 1,661 crore), ICICI Bank (Rs 1,501 crore), RIL (Rs 1,199 crore), Tata Steel (Rs 1,006 crore), Infosys (Rs 898 crore), SBI (Rs 861 crore) and HDFC (Rs 814.24 crore) were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.

    Most active stocks in volume terms
    Tata Steel (Shares traded: 9.2 crore), ONGC (Shares traded: 2.8 crore), Coal India (Shares traded: 2.2 crore), ITC (Shares traded: 1.7 crore), ICICI Bank (Shares traded: 1.6 crore), SBI (Shares traded: 1.4 crore) and Hindalco (Shares traded: 1.3 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of KRBL, Escorts, Cummins, L&T, BHEL, Britannia and Cochin Shipyard witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Medplus Health Services witnessed strong selling pressure and hit their 52-week low, signaling bearish sentiment on the counter.

    Sentiment meter favours bulls
    Overall, market breadth favoured bulls as 2,076 stocks ended in the green, while 1,408 names settled with cuts.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

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    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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